Shareholder litigation and changes in disclosure behavior

• 成果类型: Article
• 署名作者: Rogers, Jonathan L.; Van Buskirk, Andrew
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2008.04.003
• 发表日期: 2009
• 关键词: management forecast precision; CONFERENCE CALLS; determinants; lawsuits; REFORM; IMPACT

摘要

We examine changes in the disclosure behavior of firms involved in 827 disclosure-related class-action securities litigation cases filed between 1996 and 2005. We find no evidence that the firms in our sample respond to the litigation event by increasing or improving their disclosures to investors. Rather, we find consistent evidence that firms reduce the level of information provided post-litigation. Our results suggest that the litigation process encourages firms to decrease the provision of disclosures for which they may later be held accountable, despite the increased protections afforded by the Private Securities Litigation Reform Act of 1995. (C) 2008 Elsevier B.V. All rights reserved.